• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mr Kwang-Ro Kim, Managing Director, LG Electronics India Pvt Ltd, at the launch of mobile instruments in Bangalore on Thursday. — G R N Somashekar

Bangalore , March 25

LG Electronics expects over 50 per cent of its total revenues this year from semi-urban and rural markets and may consider floating an IPO once revenues cross Rs 10,000 crore.

The LG Electronics Managing Director, Mr Kwang - Ro Kim, told newspersons that the company is investing around Rs 100 crore in its new facility in Pune which is expected to become operational in August and development of new models. The Pune facility can manufacture up to two lakh TV sets per year. LG set up its manufacturing facility in Greater Noida in 1998 with an investment of around Rs 500 crore.

"The metros are saturated. Hence, we are targeting the semi-urban and rural markets as there is huge potential there," Mr Kim said.

Mr Kim said it expects around Rs 3,500 crore revenues from semi-urban and rural markets out of total revenues of around Rs 7,000 crore expected during the current calendar year.

Mr Kim said according to ORG, a market research organisation, LG leads in television and washing machine segments.

Mr Kim also launched the G1500 GSM mobile handset priced at Rs 5,990 aimed at the youth. It expects to get a 10 per cent market share in the GSM market during the current calendar year.

He said LG expects to sell 5 lakh handsets this year with Karnataka alone contributing 10 per cent of the total revenues of around Rs 350 crore. LG had earlier announced that it expects to become the second largest player after Nokia by the year-end. LG plans to launch 13 more handsets ranging from the lowest end to the top end of the market. The lower end of the market with a sub Rs 5,000 price tag, constitutes around 60 per cent of the total handset market in India.

LG plans to expand its marketing by tying up with 400 more retail outlets across the country to sell its handsets. LG has already tied up with 120 retail outlets to sell its mobile phones.

Mr Kim said LG currently has no plans to manufacture handsets in India because of extremely low import duties. "With a mere 5 per cent duty, it is not necessary to manufacture handsets in India," he said.

In Karnataka, currently, LG has a market share of 20 per cent in the CTV category, 35 per cent in the frost-free refrigerators, 23 per cent in the direct cool refrigerators and 45 per cent in the microwave ovens and 28 per cent in the washing machine segment.

More Stories on : Outlook | New Products & Services

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Wyeth shuts down Mumbai plant; `evaluating' options

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line